Solarworld Energy Solutions' ₹490 crore IPO is open from September 23 to 25, with a price band of ₹333-351 and a lot size of 42 shares. The shares are trading at approximately a 19% premium in the grey market. Brokerages have recommended 'subscribe for long term,' although the valuation is considered expensive.
Solarworld Energy Solutions IPO: Solar energy sector company Solarworld Energy Solutions launched its ₹490 crore IPO on September 23, which will remain open until September 25. It includes new shares worth ₹440 crore and an Offer for Sale (OFS) of ₹50 crore. The price band is ₹333-351 per share, and the lot size is 42 shares. Its premium in the grey market is approximately ₹65. The company has raised ₹220.5 crore from 14 anchor investors. Brokerage firms believe this IPO is suitable for the long term, although the issue appears fully priced at a P/E ratio of 39.6.
Price Band and Lot Size
Investors can bid for this issue within the price band of ₹333 to ₹351 per share. The lot size has been set at 42 shares, meaning investors must bid for a minimum of 42 shares. Nuvama Wealth Management Limited is the Book Running Lead Manager for this issue, and MUFG InTIME India Private Limited is the Registrar.
Share Reservation
In Solarworld Energy Solutions' IPO, 75 percent of the shares are reserved for Qualified Institutional Buyers (QIBs). Meanwhile, 10 percent is reserved for retail investors and 15 percent for non-institutional investors. This reservation will provide opportunities for various categories of investors.
Company's Business
The company specializes in Engineering, Procurement, and Construction (EPC) services for solar power projects. Its promoters are Kartik Telatia, Rishabh Jain, Mangal Chand Telatia, Sushil Kumar Jain, and Anita Jain. The company's focus is on executing large-scale projects in the rapidly growing solar energy sector.
Financial Position
Looking at the company's financial position, its revenue increased by 9 percent to ₹551 crore in FY2025, up from ₹505.50 crore a year ago. The company's net profit surged by 49 percent to ₹77 crore, compared to ₹51.69 crore in FY2024. During the same period, EBITDA grew from ₹71 crore to ₹106.75 crore. However, the company also reported borrowings of ₹114.55 crore in FY2025.
Grey Market Indications
Investor interest in Solarworld Energy Solutions shares is clearly visible in the grey market. Here, the company's shares are trading at a premium of ₹65, or about 18.52 percent, above the upper price band of ₹351. The grey market is an unauthorized market where shares are traded before listing. This indicates a potential rally in share prices at the time of listing.
Valuation Overview
The company's valuation is assessed at a P/E multiple of 39.6 times based on its annual earnings for FY2025, with a post-issue market capitalization of approximately ₹3042 crore. Experts state that this issue is fully priced, meaning the valuation may not be considered highly attractive. Nevertheless, the rapidly growing solar energy sector and the company's robust financial position continue to keep investors interested.
Listing Date
The allotment for this IPO will be finalized on September 26. Subsequently, the company's shares will be listed on BSE and NSE on September 30. Investors are now focused on potential listing gains and the company's long-term prospects.
